The Central Bank of Russia announced on Friday that it lowered its interest rate from 9.5% to 8%. This decision was justified on the grounds that inflation has recently been slowing down.

After this reduction of 150 basis points, the Russian Central Bank's key rate is now lower than it was before the launch of Moscow's special operation in Ukraine at the end of February.

In the wake of Western economic sanctions, the Central Bank had drastically raised its rate from 9.50% to 20%, before making several cuts in recent months.

"Current consumer price growth rates remain low, contributing to a further slowdown in annual inflation. This is due to both the influence of a set of one-off factors and the subdued consumer demand," the Bank of Russia said in a statement.

The bank added it is considering the necessity of further rate cuts in the second half of 2022, and the next rate review meeting is expected to be held on Sept. 16.

Prior to the start of the war, the Central Bank had drastically raised its interest rate from 9.50% to 20%, before making five successive cuts in recent months. It did so to support financial and price stability and protect the savings of citizens from depreciation amid the sanctions that were imposed by the West.

The central bank slashed the rate to 17 percent on April 8, to 14 percent on April 29, to 11 percent on May 26, and to 9.5 percent on June 10. 

Read more: 7th package of EU anti-Russia sanctions enters into force on July 21